Banks and financial institutions have recently taken a liking to cryptocurrencies. What was initially the black sheep of the financial market has come back to dominate it in a spectacular fashion, and it has managed to change the minds of all the previous companies that once doubted it. Even JP Morgan, whose CEO is still very skeptical of cryptocurrencies and how useful they can be has taken a somewhat kinder stance towards the relatively newer asset.
Even recently, they released their long-term price prediction for the poster child of the crypto market, which was almost double that of the last one. In the last prediction, analysts at JP Morgan believed that the price for Bitcoin could jump up to over $70,000 in the long run. However, with the bullish moves that Bitcoin was made as of late, it was able to reach closer to $70,000 faster than anyone else could have imagined.
Therefore, after taking into consideration the new scale of the crypto market and recent advancements, the price could jump up to $146,000. The new report was a big deal for the crypto market, as it meant that more of these institutional financial players are also taking the crypto market very seriously.
JP Morgan made its analysis public in the first issue of their newest publication that was released only a week ago. And it sure was an interesting way to start off the inaugural issue of a publication, as they also talked about a lot of the alternative assets that are available for people to invest in.
Of course, the prediction that they gave for Bitcoin reaching such a high value came from the fact that it will need more investors. More specifically, JP Morgan believes that the price for Bitcoin can increase by a significant margin if institutional investors come into the market. In fact, they believe that if these investors were to invest in Bitcoin instead of anything else, especially gold, it could very easily reach the predicted price.
The analysts at JP Morgan believe that the main reason why cryptocurrencies continue to grow is that they are on a multi-year structural ascent. And as Bitcoin continues to make its way into overbought territory, it is very easy to see that the price could fall soon.
But since this is the crypto market, price drops are just a normal thing that people have to deal with. Most investors account for this price drop, which is why they rarely put all of their eggs into one basket. Instead, investors have been diversifying their portfolios to better prepare for the market crashing again.